Early Oil Exploration in Nigeria: A Historical Overview

Strategic Insights -

Oil exploration in Nigeria began in 1908 when Nigerian Bitumen Corp., a German company, started exploring for oil in the Araromi area of present-day Ondo State. The company abandoned its dry wells at the start of World War I in 1914, and it wasn't until 1936 that Shell D'Arcy was granted sole rights to explore for hydrocarbons across Nigeria. Shell's activities were interrupted by World War II, but they eventually discovered oil in 1956 at Oloibiri in the Niger Delta, with production beginning in 1958 at a rate of 5,100 barrels per day (b/d). As Nigeria gained independence in 1960, new companies began to explore for oil, leading to a significant increase in oil discoveries.

Key Takeaways:

  • The first oil exploration efforts in Nigeria were initiated by Nigerian Bitumen Corp. in 1908.
  • Shell D'Arcy was granted sole rights to explore for hydrocarbons in Nigeria in 1936.
  • Shell's exploration activities were interrupted by World War II but resumed in 1947 with the formation of a Shell-BP unit.
  • The group discovered oil in 1956 at Oloibiri, with production beginning in 1958 at a rate of 5,100 b/d.
  • As Nigeria gained independence in 1960, new companies, including Mobil, Agip, Gulf Oil (now Chevron), Safrap (now Elf), Amoseas (now Texaco/Chevron), Tenneco, and others, began exploration activities.
  • The pace of oil discoveries picked up in the following years, with most companies eventually finding success in offshore areas.

Statistics:

  • 1908: Nigerian Bitumen Corp. begins oil exploration in Nigeria.
  • 1914: World War I interrupts Nigerian Bitumen Corp.'s activity.
  • 1936: Shell D'Arcy granted sole rights to explore for hydrocarbons in Nigeria.
  • 1937: Shell begins prospecting for oil in Nigeria.
  • 1947: Shell forms a Shell-BP unit in Nigeria.
  • 1956: Shell discovers oil at Oloibiri in the Niger Delta.
  • 1958: Oil production begins in Nigeria at 5,100 b/d.
  • 1960: Nigeria gains independence and new companies begin exploration activities.

Sources:

  • [Source unavailable – text is a direct quote from an unpublished text]